Apple Inc. decides to cut its App Store commission for small developers
Apple’s new policy will come into effect on January 1, 2021. The company said it will offer more information related to the eligibility criteria for developers in December
avatar
Staff or Guest writer for The Dog of Wall Street.
2020-11-18 14:39

Apple Inc. (AAPL) on Wednesday announced that it is looking forward to trim its App Store commission to 15 percent from 30 percent for small developers. The Cupertino, California-based tech giant said it has rolled out the program for developer who generate less than $1 million in proceeds from its store on annual basis.

Apple Inc. decides to cut its App Store commission for small developers

The iPhone maker has faced criticism in the past from developers, who alleged that its high fee limits the choices for users, besides increasing the app prices. However, the company previously said that it has same rules for all the developers and its app store is a gateway for developers to reach its massive customer base.

The latest announcement is expected to have an impact on both the company and developers. According to analytics firm Sensor Tower, more than 97 percent of developers associated to Apple Store make less than $1 million per annum. Though, they collectively accounted for just 4.9 percent of the overall sales the company generated from App Store last year.

Apple’s sponsored App Association responded to the latest move by saying the lower commission for small developers will enable them to invest extra money on expanding and designing new products and services.

However, some criticized the latest move by saying that even if developers managed to scale up their business and boost their annual revenue over $1 million on annual basis, they will be charged 30 percent, as they will no longer be counted as small developers in the eyes of Apple. Eventually, it will be harder for them to grow further after crossing the $1 million mark.

Apple’s new policy will come into effect on January 1, 2021. The company said it will offer more information related to the eligibility criteria for developers in December.

Shares of Apple (NASDAQ: AAPL) are trading nearly flat in the mid-day trading Wednesday. If we look at the performance of the company in 2020, the stock has surged more than 61 percent on a year-to-date basis.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

positive
negative
Published On
2020-11-18 14:39

avatar
About the Author
Staff or Guest writer for The Dog of Wall Street.


buy-coffee
You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

Levi Strauss' Bold Gambit: Is the Denim Icon's DTC Shift Enough to Weather the Storm?
Levi Strauss & Co. boasts a strong quarter with direct-to-consumer growth and innovative fashion, but can it navigate the choppy waters of the retail market?
By Alfonso | 1 year ago

Amazon's Bold Counterattack: Introducing the China-Direct Discount Section
As competition heats up, Amazon unveils a daring new strategy to offer unbeatable prices and direct shipping from China.
By Alfonso | 1 year ago

Tesla's Legal Challenges: Facing the Music on Autopilot Misrepresentation
Court ruling intensifies scrutiny on Tesla's self-driving claims.
By Alfonso | 1 year ago

Netflix's Ad-Supported Triumph: A New Era in Streaming
Surpassing 40 million users, Netflix’s ad-supported plan redefines the streaming landscape.
By Alfonso | 1 year ago

Tesla Stock (TSLA): Look Who's Back!
I’m cautiously optimistic but I’m at the point where I need to see it to believe it.
By Mike Sakuraba | 1 year ago

2 Earnings To Pay Attention to Next Week
Since big tech is the theme, you probably know what I have my eyes on for next week.
By Mike Sakuraba | 1 year ago

2 Stocks to Watch Below $10
Here are two stocks that are currently less trading in the single digits that I believe have some relative upside from their current prices.
By Mike Sakuraba | 1 year ago

Looking Ahead to Tesla's Earnings: What Can We Expect?
Is there any stock that has been more talked about than Tesla (NASDAQ: TSLA) as of late? It’s a company that is always in the spotlight but the stock is under some heavy scrutiny this year and deservedly so.
By Mike Sakuraba | 1 year ago